04 Oct 2018 Josphat Kariuki
U.S-Based Crypto Exchange Poloniex Lifts Lending Services and Margin Trading For U.S Users
According to the announcement, the exchange has also decided to strike off three digital tokens from their list.
Founded in 2014, Poloniex is an innovative cryptocurrency exchange built as a token-to-token trading platform offering a host of crypto coins. Earlier this year, the exchange became a subsidiary of circle, a Dublin-based payment technology company that acquired Poloniex for $400 million. The exchange currently ranks 38th according to CoinmarketCap.
Following the statement, Poloniex will remove lending products and margin trading for their U.S-based clients at the end of 2018. The exchange says the move will ensure that the company complies with all the regulatory requirements in all jurisdictions. This announcement didn’t point directly towards any specific regulations.
By October 10, Poloniex is also expected to delist three cryptocurrencies; Expanse (EXP), Gnosis (GNO) and Synereo (AMP). The move indicates that the exchange’s customers must stop trading or withdrawing balances in these currencies.
Earlier in July, the Department of Justice (DOJ) in Delaware investigated Poloniex. The investigation came after the company’s support center and social media accounts got besieged by clients who were unable to access their accounts. Some customers also reported receiving emails in May, where Poloniex gave the users 14 days to verify their accounts. The accounts would be frozen after the elapse of the deadline.
Poloniex users also took to the company’s unofficial subreddit to complain about stuck or missing deposits. Some users even closed their accounts, despite not being directly affected by the issue. Earlier in January, some users also claimed that Poloniex wasn’t crediting back their accounts after canceling orders.